The Windhoek High Court has ordered Alliance Media Namibia to pay Namibia Airports Company more than N$23.1 million for making use of its advertising space at Hosea Kutako International Airport.
Judge Esi Schimming-Chase said Alliance was obligated to pay NAC in terms of their contract, but failed to do so.
NAC sued Alliance for failing to honour the 2016 court order, which was the result of the company not making payments as per their 2008 agreement.
Alliance has not made any payments since June 2016, nor has it provided financial records, according to NAC.
In its court documents, NAC claims it entered into an agreement with Alliance for it to make use of 120 advertising spaces inside and outside areas of HKIA. The agreement was extended in 2008 for three years, and again in 2011.
However, Alliance breached the terms of the 2008 agreement, and the court ordered it to pay N$534697 per month for the repayment of N$17.5 million it owes NAC.
The company was also ordered to pay 58% of the revenue that was generated at HKIA after the expiration of the renewed agreement from September 2014 to date. The payments are subject to Alliance providing audited statements of income to verify the actual revenue that was generated.
However, Alliance failed to make its monthly payments.
In her ruling, Schimming-Chase said NAC was within its right to cancel its contract with Alliance, as they were the ones who breached the contract first by not complying.
They were also right to cancel the settlement agreement concluded in May 2016. She ordered that Alliance pay a total of N$23 123 678.60 and vacate HKIA.
They must remove their advertising material on digital screens, check-in facilities, departure areas and everywhere else inside and outside the terminal building.
Alliance must also deliver full audited statements of its income generated at HKIA for the period of September 2014 to May 2016 within 30 days.
They were ordered to pay the legal fees of the NAC’s team.
-mamakali@nepc.com.na